Obamacare Is Already Forcing Private Insurers To Lower Their Premiums

[one...two...tree 2,762]

In a striking illustration of the promise that the health law holds for consumers, two Oregon private insurers vying to sell coverage on the state’s Obamacare insurance marketplace this October arereevaluating their opening bids for the plans’ monthly premiums. The reason? A side-by-side regional comparison of all proposed 2014 premiums for Oregon marketplace plans became public onOregon’s marketplace website Thursday, and showed that the two insurers’ planned monthly premiums were far higher than other proposals. That raised fears among the companies’ officials that their plans wouldn’t be competitive on the market later this year, leading them to proactively request a rate reduction — and as more of Obamacare is implemented, state insurance commissioners expect that trend to continue:

“Posting rate comparisons company-by-company is a taste of what is to come,”

says Cheryl Martinis of the Oregon Insurance Division.

Judging by the reaction,

there’s already an impact.

Providence Health Plan on Wednesday

asked to lower its requested rates by 15 percent.

Gary Walker, a Providence spokesman, says the “primary driver” was a realization that the plan’s cost projections were incorrect.

But he conceded a desire to be competitive was part of it.

A Family Care Health Plans official on Thursday said the insurer will ask the state for even greater decrease in requested rates. CEO Jeff Heatherington says

the company realized its analysts were too pessimistic after seeing online that its proposed premiums were the highest.

“That was my question when I saw the rates was, ‘Can we go in and refile these?’” he said.

“We’re going to try to get these to a competitive range.”

Although some insurers have been using Obamacare as an excuse to hike premiums despite record profits, such rate hikes have been rarer — and less extreme — since the law’s passage. And to emphasize, this is all happening before the state has had a chance to review and approve initial plan rates — much less launch the actual marketplace. After the exchange opens up, consumers will have even more detailed information about marketplace plans, including the ability to compare — not just rates — but actual benefits offered on the plans side-by-side.

That’s particularly significant because much of the current variation in health plan premiums stems from rampant health care price opacity and wildly divergent benefits offered on different health plans — a status quo that won’t last in the Obamacare era since the law requires qualifying insurance plans to offer a base level of ten “essential health benefits,” including prescription drug, mental health, and maternity services. That means that Americans will be able to go online and figure out whether a plan costs more because it actually provides more robust benefits, or because an insurance company is just trying to gouge prices and maximize profits. Insurance offered on the marketplaces will be separated into Bronze, Silver, and Gold plans based on how generous their offered coverage is, making consumer comparisons between similar health plans simple.

As Thursday’s development shows, that public information empowers consumers by forcing insurers to compete with one another to attract customers. Or to put it another way — and contrary to conservative fear-mongering about the law — Obamacare is working exactly as it was intended to. And with 24 million Americans expected to gain coverage through the marketplaces by 2016, that’s great news for Americans’ pocketbooks — as well as their health.

http://thinkprogress.org/health/2013/05/10/1994331/obamacare-forcing-insurers-lower-premiums/

[Mr. Big Dog 10,747]

[Darnell 8,479]

Oregon must be a really boring place,

as

Texas has been posting these things online for the last 6 years.

Oh Wait ! We have more people here, and more insurance companies, and more competition for payers...

Nevermind..

[MyLittlePony 340]

President Obama has committed impeachable acts, however, that would leave us with President Baden and that does not sound nice.

[Darnell 8,479]

Baden-Powell? He's been dead some time.

What part of your body are you typing with ?

[MyLittlePony 340]

Baden-Powell? He's been dead some time.

What part of your body are you typing with ?

My big ####### is trying ill take over.

[Hilarious Clinton 452]

Hey dumbies...... do you know how insurance even works?

[MyLittlePony 340]

Hey dumbies...... do you know how insurance even works?

Are you in good hands with allstate?

[mota bhai 2,675]

Baden-Powell? He's been dead some time.

What part of your body are you typing with ?

You seem to have an unhealthy obsession with #######.

[decocker 7,198]

Hey dumbies...... do you know how insurance even works?

pls explain for the dumbies...

[SMR 368]

President Obama has committed impeachable acts, however, that would leave us with President Baden and that does not sound nice.

The scary thing about John Boehner is that even as a Republican I'm not sure I would feel comfortable with trying to impeach Obama and Biden insofar as that would give us President Boehner.

[JohnR! 5,495]

The scary thing about John Boehner is that even as a Republican I'm not sure I would feel comfortable with trying to impeach Obama and Biden insofar as that would give us President Boehner.

I have a theory that Boehner and Pelosi are the same person, similarly to Michael and LaToya Jackson...

[Teddy B 17,252]

You seem to have an unhealthy obsession with #######.

Define "unhealthy".

Edited May 13, 2013 by Teddy B

[mota bhai 2,675]

Define "unhealthy".

No.

[Teddy B 17,252]

No.